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The Perfect Time to Change Your Livelihood :Web Based Ecommerce
is it For You ?
So you want to go into business for yourself. I don't blame
you. Working for you is the most rewarding way I can think
of to make a living. When you run your own business, you alone
are responsible for the success you create. You make all the
decisions and chart your own path. By virtue of your own hard
work, you take the credit?and the profit?for your success.
But working for you is not always a bed of roses. Just as
you reap the credit for success, you're also responsible if
the business fails.
Self-employment also has some inherent risks, the biggest
of which is what makes it attractive in the first place?you're
on your own. In addition, the hours can be grueling and irregular,
making family life and personal relationships difficult. It
often doesn't have the benefits and "perks" that
come with corporate employment. And the risk of financial
disaster is always just around the corner
Still, most business owners will tell you it's the only way
to fly.
Small businesses have characteristics that will always make
them attractive. From a consumer's point of view, they're
usually more pleasant to deal with than large businesses.
For one thing, they can offer personalized service of the
highest quality.
Don't you enjoy walking into a store where the people know
you by name? It means you have a special relationship with
the owner and the employees and can count on being treated
special. It also means you'll keep coming back.
As an example, look at the small family-owned grocery store
in your neighborhood. Most likely it is run by the son of
the founder, and several family members work there part-time.
You can pass it every time you go out and stop there at least
once a day to pick up the papers or buy milk or bread or some
other item you need.
You probably discovered the store when you first moved into
the area and began to stop in regularly. Within a short period
of time the owner and the employees all knew my name and began
treating me like an old friend. Now when you go in I know
you will end up hanging around, talking about one thing or
another. If you forget my wallet you can often put your purchases
on a tab. There's a sign on the counter?No Checks Accepted.
However you can write checks. They may even give your child
a part-time job while in high school. It all seems like such
insignificant stuff, but it really makes a difference about
how you feel about that business.
Small businesses are also more flexible and quicker to adapt
to change than large businesses are. When market or consumer
trends require a quick adjustment, a small business can turn
on a dime to react. By contrast, a large corporation will
turn the corner with all the speed and agility of the a large
aircraft carrier .
In this era, small businesses are being created at a pace
not seen for decades. Women and minorities are starting businesses
at a record rate. This is no accident. Working for yourself
makes especially good sense these days. Let's examine some
of the reasons for the resurgence of the small business and
some of the options open to the 21st Century entrepreneur.
1) CORPORATIONS ARE DOWNSIZING
One of the biggest reasons that small businesses are growing
is the downsizing of America's corporations. When many parents
of the baby boom generation entered the workforce, they could
go to work for a big company and almost always count on spending
the rest of their lives working there, if they chose. There
was a sense of loyalty to the company, and that sense of loyalty
was returned; companies went out of their way to take care
of their people. America's economy was thriving, our big corporations
were growing by leaps and bounds, their workers' jobs were
secure, and the future showed nothing but promise.
But those days are over. Over the last number of years, foreign
competition and cheap overseas labor have smacked American
companies square in the face and awakened us to the fact that
our seemingly untouchable corporate Goliaths are indeed vulnerable
to these overseas Davids. "Made in Japan," a tag
that consumers laughed at in the sixties, now elicits consumer
confidence
. And Products from China although not there are beginning
in some ways to attract the same respect if nothing else for
their low prices. ..
One of the industries most severely affected by foreign competition
was the automobile industry. Even GM the monolith American
car company, sagging under a deluge of Japanese imports that
are considered affordable, well-built, and fun to drive and
even better value.
Our clothing industry suffered when many of its jobs moved
to Asia, with its lure of cheap labor.
The steel industry watched in dismay as its foundries fell
silent, brought to their knees by foreign competition.
The electronics industry is also very hard hit
. Today it is impossible to buy a television that has been
manufactured by an American-owned company.
To compete in the new world economy, corporations throughout
the United States have had to tighten their belts to avoid
drowning in a sea of red ink. Their goal is to become lean
and mean and keep profits?and the price of their stock?as
high as possible. As a result, they're lying off employees
faster than ever before and outsourcing manufacturing and
even now service jobs as rapidly as possible;
Companies also are merging with one another in an effort to
boost profits. . When the mergers are complete many former
employees will have lost their jobs in the process. The most
unfortunate of them will find themselves in late career with
salary needs that make them unattractive to most potential
employers.
It's not surprising; therefore, that many of these corporate
casualties are starting web based ecommerce businesses. Some
are staying in the same fields they were in during their corporate
lives, starting consulting firms (if they can find clients)
or service firms in accounting, payroll management, human
resources, and other areas.
There are good opportunities for them. The rash of corporate
downsizing has created an industry in that that companies
hire outside firms to take care of some of the tasks their
employees used to do. Outsourcing frees the companies of employee-associated
costs such as FICA, health insurance, pension plans, and the
like. In many cases, former employees have gone right back
to work for the companies who laid them off, only this time
as independent contractors rather than as employees. And this
time, the former employee, not the corporation, is responsible
for his taxes and insurance.
But many other former corporate workers are venturing into
fields that are entirely new to them. They're finally indulging
their true interests, starting bookstores, cooking supply
stores, art galleries, restaurants, golf shops, and all sorts
of other businesses. Though few of them will make the kind
of money they made in their previous jobs, most don't care.
They've discovered that the pleasures of being your own boss
and the freedom that comes with owning your own business are
worth the sacrifices they may have to make because of a reduced
income.
Another thing they're discovering (and something you and any
other new entrepreneur will discover) is that running a small
business is a lot more complicated than they thought. Rather
than having the tidy set of responsibilities you have in corporate
life, when you run your own business you wear every hat, from
CEO to janitor. It keeps you on your toes and makes you learn
quickly. Those who don't fail quickly.
WE'RE NOW A SERVICE ECONOMY
Because of the decline of corporate America, particularly
in manufacturing, we're rapidly becoming a service-based economy.
Business services, home and lawn services, catering, child-care,
commercial cleaning, automobile services, home improvements?the
list of potential businesses is virtually endless.
Economists predict nothing but future growth for service businesses.
Over the years, as our economy has expanded, personal spending
on services has soared. Today, more disposable dollars are
spent on services than on durable goods. This trend should
continue for the foreseeable future.
The reason for this is simple: Americans are busy people.
Most come from two-income families with hectic schedules.
They're willing to pay for services that provide them with
the time to relax and enjoy their downtime. The market for
leisure-time "experiences" is also growing. People
pay a lot of money for classes, hobbies, vacations, and health
clubs, in addition to having their lawns mowed and their homes
cleaned.
Take a simple thing like eating. Obviously, the oldest service
business related to eating is the restaurant. The next oldest
is probably catering. But as society changed and people had
even less time to cook other ways of servicing hungry Americans
arose.
Now McDonald's, Wendy's, Burger King and other fast-food joints
are an integral part of the American landscape. More and more
restaurants offer delivery and takeout. . All you have to
do after a hard day at work is come home and pop one in the
microwave. The next day, there's usually enough left over
for lunch.
The bottom line with service businesses is simple. If enough
people don't want to do something and are willing to pay good
money to have it done for them, you have a business opportunity
before you.
Home is no longer just where the heart is; it's frequently
where the job is as well. Quite a few people who have been
cast adrift by big corporations have started consulting businesses
or other services to take advantage of "outsourcing"
opportunities. Many of them are working at home or at least
using their home as a base of operations.
But they're not the only ones who have discovered the luxuries
and benefits of the home office. Many people who still work
for large corporations also now work at home, connected to
the office and their clients by computers, cellular phones
and other means of modern communication. It's a trend that's
growing because corporations have found that, in most cases,
employees are happier and more productive when they work at
least part of the time at home. The elimination of the daily
commute gives them more time at home and allows them to become
more involved in family and community activities.
It also makes sense to the bottom line. Many companies are
discovering that allowing their employees to work at home
reduces the amount of office space they need to lease. Rather
than providing each employee with his or her own desk, many
are turning to what Becker calls the "non-territorial
office." Under this system, as many as four or five employees
will share a workstation, keeping their personal belongings
and work materials in lockers and getting them out when they
show up at the office. In the meantime, the office is becoming
more of a base where people gather for meetings and to socialize.
For the budding entrepreneur, working at home merits serious
consideration. Obviously, some businesses require a storefront
or an office. But many others, particularly service businesses
do not...
When you're thinking about starting a business, two big questions
always loom above all others: What business do I want to be
in? And how much money do I have to invest? In today's business
world, there are many choices. Here are some of your options.
If you are an entrepreneur with big dreams and a modest budget,
starting a service business is an excellent option. It allows
you to put your talents to work by offering your customers
a service you think you can provide at a profit. For example,
you might start a home remodeling business, a painting business,
or an automotive services business. If you have expertise
in nutrition and exercise, you might become a personal trainer
for fitness buffs. If you have a background in business, you
might offer your talents as a consultant to other businesses
or businesspeople.
Service businesses are inexpensive and easy to start up because
you are the product. Therefore, you don't have to tie up a
lot of money in inventory. Also, you may be providing the
service at the customer's home or place of business. So rather
than needing a storefront, your service business could be
operated out of your home or from a car or van. You won't
need to hire employees, either, at least not at the outset
of your business. (If you need employees later, it's a good
sign. It means your business is expanding.) The only real
investment you might need to make is for equipment. Many service
businesses can be started for less than ten thousand dollars.
Some can be started for only a few hundred dollars.
There are downsides to service businesses, however. For one
thing, they're extremely competitive, so you need to provide
the best service you possibly can. You need to be a self-starter,
organized, focused, and you need to make sure you either show
up when you tell your customers you're going to be there or
are there when they show up at your place. Service businesses
aren't for procrastinators or people who have trouble motivating
them.
Another problem with service businesses is that they often
require you to work when everyone else is playing. Consider
a catering business. Your customers are peopling throwing
parties, weddings, business dinners, and other social gatherings.
Most of them will be in the evening and on weekends. If you
don't like working this type of schedule, you may be unhappy.
START A RETAIL BUSINESS
For those entrepreneurs with more capital, opening a retail
store is a traditionally popular strategy. Retailing allows
you to immerse yourself in the things you love?books, gourmet
foods, sporting goods, clothing, and electronics?by selling
them directly to the consumer. And if you enjoy customer contact
and don't mind the long hours, it's a great way to make a
living.
A downside of retailing is the cost. You'll need more capital
because you'll need a place to do business. That means buying
or leasing a storefront or building. You'll need inventory,
store fixtures, one or more computers, the appropriate software,
and a wide variety of supplies. You'll probably need at least
one employee and some money for advertising and promotion.
It's also a pretty good idea to have a substantial financial
cushion beneath you to help you weather the uncertainty of
your first few years in business. For these reasons, setting
up even the most modest retail business will usually cost
anywhere from ten to twenty thousand dollars. Depending on
the size of the business and the type of product you sell,
you may need several hundred thousand dollars or even several
million dollars.
Another negative of retailing is the long hours. You don't
make money when the doors are locked, so most retail stores
are open seven days a week and, except for Sunday, twelve
or more hours a day.
This means that either you have to be there or you need to
hire people to run the show while you get some time off.
Retailing also means constant contact with the public. Dealing
with the public is not always a bucket of chuckles. Most of
your customers will be delightful people who are a pleasure
to work with. But, human nature being what it is, you'll also
have some customers who are just miserable human beings. You
have to be prepared to keep a smile on your face and treat
them courteously when what you'd really like to do is throw
them out the door. When you run a retail operation, the last
thing you need is someone running around saying terrible things
about you.
BUY AN EXISTING BUSINESS
Some entrepreneurs choose to buy an existing business. This
has some advantages. The biggest plus is that the business
has already established a track record. If it's been around
for a number of years and shows a consistent history of profitability
and growth, it's less likely to fail than a brand new business
It has an established clientele, it's known in the community,
and people know what they'll see when they walk through the
doors. When you buy it, you hit the ground running.
The downside is you'll pay for the business's successful track
record. It's called goodwill. In addition to assuming the
costs associated with starting a brand-new business, you're
paying the seller a premium for the success and longevity
he achieved. Of course, if the business continues to perform
well and grow under your ownership, you can probably recoup
your investment when you sell it. If you've really done well,
you might be able to get a lot more for it than you paid.
Still, buying a business is expensive. If you don't have much
capital, it's really not an option.
Some people pursue their dreams by buying a franchise. If
they buy wisely, this gives them a head start on the person
who starts a business from scratch or buys an existing business:
when you buy a franchise, you're buying a tried and tested
business system that gives you a product that's in demand
and a successful method of marketing that product. The person
who sells you the franchise?the franchisor?has created his
business system through years of trial and error and is now
reaping the rewards of his own hard work by selling you the
secrets that made him successful.
There's no question that franchises are a very attractive
option for the 21st Century entrepreneur. The industry has
been growing by leaps and bounds for the last twenty years.
.
One downside of buying a franchise is the cost. Not only do
you have the same costs associated with starting a business
from scratch or buying an existing business but you'll also
have to pay the franchisor an initial fee for the franchise,
as well as a certain percentage of your gross sales each month
in royalties the entire time you own your franchise. Franchise
fees can range from several thousand dollars to several hundred
thousand dollars, depending on the size of the business, and
royalty fees are usually from five to seven percent. Sometimes
another percent or two is tacked on each month to cover advertising
costs. That's a big chunk of change to be giving up each month.
Another problem with franchising is the fact that there are
a lot of people trying to sell franchises who either aren't
ready to act as responsible franchisors or who are just plain
trying to rip people off. It's always been a fairly Looney
industry, and although it's much more regulated today than
ten or twenty years ago, you can still get taken if you're
not careful.
This is not to say that there aren't good franchise opportunities
available. There are several thousand very good companies
out there. But for some reason, people think that if they
buy a franchise they're buying a sure thing, and that's just
not the way it works. Buying a franchise requires that you
thoroughly investigate the franchisor and the company beforehand
to make sure you're getting what you're paying for. Doing
it right can take months, if not years.
Like franchising (and for many of the same reasons), ecommerce
websites are one of the premier growth industries for the
21st Century, and it is one of the best bets for entrepreneurial
success.
Like franchising (and for many of the same reasons), web based
eCommerce is one of the premier growth industries for the
21st Century, and it is one of the best bets for entrepreneurial
success.
The rapid proliferation of home computers and the growing
interest in electronic communication is inspiring many others
to set up "electronic storefronts" on the Internet.
ECommerce website based businesses run the gamut from mom-and-pop
businesses operating out of their basements or garages to
retailing giants like Dell Computers. Some are operated part-time
by people who want to supplement their income from other jobs.
Others are full-time endeavors that are experiencing healthy
growth and profits. They sell everything imaginable and offer
a full range of prices. Whether you want a $15,000 diamond-and-ruby
necklace or a $15 zircon-and-glass knockoff, you can find
it in a mail order catalog.
The reasons for the growth and popularity of web based e-commerce
are a combination of demographics, societal changes, and technological
breakthroughs. For consumers, the main attraction is the convenience.
They can purchase a wide range of merchandise by simply spending
a few minutes on the phone or, increasingly, the computer.
A day or two later, their purchases arrive. It's quick and
it's easy.
For you and other entrepreneurs, operating a web based ecommerce
business combines the best of both retail and service with
few of the hassles. You're operating a retail business, but
one with little face-to-face customer contact. And you're
operating a service business in the sense that you're providing
a huge convenience to your consumers?saving them time and
simplifying their lives.
This article is free for republishing
Source: http://www.articlealley.com/article_53064_15.html
Occupation: Employment , Investment Counsellor
Bill Piker Ace Employment Services Employment Consultant Specific
Expertise Financial Sector. billys_office@yahoo.com www.aceemploymentservices.net
www.forexforexforexforex.com
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